#USA #New York #Faruqi & Faruqi #Investor Claims #Nidec Corporation

Overview of the Nidec Investigation

Faruqi & Faruqi, LLP, a prominent national securities law firm, has commenced an investigation into Nidec Corporation (OTC NJDCY) following startling revelations related to improper accounting practices. The firm is reaching out to investors who have suffered significant losses in Nidec’s stock to explore potential legal avenues.

Background on Nidec Corporation

Founded in 1973, Nidec Corporation has established itself as a global leader in the manufacture of electric motors and related components. The company is integral to various industries, including automotive and consumer electronics, providing innovative solutions. However, recent developments have raised concerns about its managerial practices and the integrity of its financial reporting.

Uncovering the Accounting Irregularities

On September 3, 2025, Nidec announced the formation of a third-party committee tasked with investigating allegations of improper accounting within the company. This announcement was a turning point, revealing a potential breach of corporate governance and compliance.

The committee’s findings included multiple documents suggesting that Nidec’s management might have been involved in improper accounting activities. Specifically, it appeared that the company manipulated financial records, violating legal and ethical standards crucial for financial transparency.

As a direct result of these disclosures, Nidec’s stock plummeted by 16.5%, dropping to $4.11 per share on September 4, 2025, causing substantial losses for investors.

Continued Investigations and Stock Price Declines

Subsequent revelations on September 26 showed that the accounting irregularities extended further than initially thought. Nidec disclosed additional inappropriate practices, particularly concerning the reported values for customs purposes. This situation prompted another drop in stock price, falling 6.6% to $4.09 per share, compounding the distress among investors.

By October 23, 2025, Nidec's predicament worsened as the company announced it would retract its year-end forecast and cease surplus dividend payouts. This decision, made to address ongoing investigations, resulted in a staggering 25.4% drop in stock prices, closing at $3.43 per share.

The Tokyo Stock Exchange was also compelled to designate Nidec under a Special Security alert due to these ongoing issues. They noted significant deficiencies in the company’s internal management systems and a broader scope of the investigation which continued to expand.

Faruqi & Faruqi’s Role

In light of these alarming developments, Faruqi & Faruqi's investigation aims to hold those responsible accountable. They are actively seeking out affected investors who might have incurred financial losses due to Nidec's alleged breaches. This includes not only direct losses from stock price declines but also potential claims linked to missed opportunities and deceptive practices.

Faruqi & Faruqi, established in 1995, has a rich history of advocating for investors and has recovered hundreds of millions of dollars for clients throughout its operations. The firm emphasizes confidentiality and offers personalized assessments of each investor's situation to explore viable options.

Conclusion

For investors impacted by Nidec’s substantial stock price declines, the time to act is critical. Individuals encouraged to contact Faruqi & Faruqi can find guidance on how to proceed with claims against Nidec. The firm stands ready to navigate this legal landscape as investors seek restitution for their losses resulting from the company’s alleged misconduct.

For more information about the investigation or to reach out directly, investors can visit www.faruqilaw.com/NJDCY or contact the firm's partner, Josh Wilson, at 877-247-4292.